DORMANT STATUS FILING
Dormant status filing is the process of applying to the ministry of corporate affairs for a company's dormant status, allowing inactive companies with no significant business transactions to maintain legal existence with reduced compliance requirements.
DORMANT STATUS FILING – An Overview
Dormant Status Filing is the process through which an inactive company applies to the Ministry of Corporate Affairs to obtain the status of a dormant company under the Companies Act, 2013. This option is available to companies that are not carrying out significant business operations or transactions but wish to retain their legal existence for future use. Once granted dormant status, the company benefits from reduced compliance obligations while remaining registered with the MCA. Regular maintenance compliances applicable to dormant companies must still be fulfilled to retain the status.
Benefits:
- Allows inactive companies to retain their legal existence while enjoying reduced compliance requirements and lower regulatory costs.
Documents Required:
- Board resolution approving the application for dormant status.
- Shareholders' special resolution or consent of shareholders, as applicable.
- Certificate of incorporation of the company.
- Statement of affairs certified by a chartered accountant.
- Latest financial statements of the company.
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DORMANT STATUS FILING
- Assess the company's eligibility for obtaining dormant status. Review and clear pending statutory compliance requirements, if any. Prepare the necessary resolutions, declarations, and supporting documents. Draft and file Form MSC-1 with the Ministry of Corporate Affairs. Coordinate the preparation of the Statement of Affairs and other required certifications. Obtain and verify shareholder approvals and lender NOCs, where applicable. Ensure compliance with the Companies Act, 2013 and MCA regulations. Track application status and address any MCA queries. Assist in maintaining ongoing compliance requirements for dormant companies.
FAQ:
Dormant status filing is the process of applying for dormant company status with the ministry of corporate affairs for a company that is inactive and has no significant business transactions.
Companies that are not carrying on significant business operations or transactions and meet the prescribed eligibility criteria can apply for dormant status.
Dormant status allows a company to retain its legal existence while reducing compliance obligations and administrative costs.
No, a dormant company remains legally registered and can be reactivated in the future, whereas a closed company ceases to exist.
Common documents include board resolution, shareholders' resolution, statement of affairs, latest financial statements, and form MSC-1.
